Dean Whittingham created A Traders Universe - Trading System Development in 2005 as a resource site for traders of all levels, with eduction, courses, brokers, tips, free videos, newsletters, trading systems, simulations and a free 7 step process for building a profitable stock, futures or forex trading system.
An example of this was when I received an email from someone stating that one of his students was consistently making 1000 pips a month trading forex (for stock, options and futures traders, in forex country this is a lot of pips!).
What I thought immediately after reading this was ‘so what’! Now don’t get me wrong, I have a lot of respect for this guy sending me the email, but it reinforces a belief I have that too many traders see trading as 2 dimensional. Let me explain…
If I was guaranteed to make 20 pips a month, this is guaranteed, without fail; then what is that worth to me? If there was no limit to the number of lots I can trade, what’s stopping me from trading 20 lots or even 50 lots? Well it’s the amount of capital and leverage I have available to me of course, but that’s not my point.
If I am able to trade 50 lots on this guaranteed 20 pips a month then that is worth $10,000 a month to me, just on a gain of 20 pips. Which do you think will be harder to achieve and more time consuming, making 20 pips a month or making 1000 pips a month?
The same goes for ROI per month and this may relate more to stock, futures and options traders. I get calls all the time from traders wanting to learn how to make 20-30% ROI per month consistently. When I ask them why such a high return a common answer is ‘I only have a small amount of capital, such as $10000, and I want to make $2000-3000 per month’.
If you think in ‘3D’, then which do you think would be easier to achieve by way of time, effort and learning, making 20-30% per month consistently or starting out with say $20000 and making 10-15% consistently per month? Either way the desired result of $2000-3000 a month is achieved.
If your reply was, “well, I only have what I have (say $10,000)”, then my response to you is; in the time it will take you to learn how to make 20-30% consistently every month, you would have been able to save well more than your original capital.
When I was a student of Peter Bain, one of Peter’s shining examples of a success was a student from South Africa who had taken his trading to the point where he was consistently making $50-55K a month! I can tell you now, he didn’t have to make a 1000 pips month to achieve this, in fact it was less than half this. This student learnt how to think in ‘3D’.
- Related Articles
- Related Q&A
- My Guide to Stock Investing
- Are You Interested In Stock Investing?
- Stock Investing - Tips You Can't Do Without
- What It Takes For Successful Stock Investing
- How To Make An Intelligent Stock Investment
- Learn to Trade Online: Sign Up for Free Stock Investing Course
- The Surefire Steps Towards Better Stock Investing
- Guide to Stock Investment for Beginners
How to Trade the Gold ETF Trends
By: Chris Vermeulen | 28/12/2009Another holiday trading extravaganza!!! Last week the market fell into its regular holiday tradition of light volume, as institutions and big traders enjoyed the holidays thus allowing prices to drift higher. We still have one more week of light trading volume before this year and holiday season is officially over. Trading during low volume times is regularly misinterpreted. Many traders figure they should not be trading this time of the year but from my experience, the last two weeks of the
How To Buy Investment Properties
By: Ricky Lim | 27/12/2009You have to understand investment properties before you buy these. You need to know as much as you can before you engage in this kind of investment. By studying the subject in great depth, you are more knowledgeable and can easily make the smart and practical decision that will benefit you in the long run.
Five Mistakes to Avoid While Home Shopping in Turkey
By: Caglar Kilinc | 27/12/2009Turkey is said to be one of the most viable options when it comes to property investment. Owe this fact to its majestic sceneries and highly affordable homes. It is also very easy and convenient to do home shopping in the country.
Best Paid Stock Advisory Service
By: narendra nainani | 27/12/2009Resistance for DOW is at 10650 and NASDAQ 2325.
Best Stock Advisory Service Indian Share Market BSE NSE
By: narendra nainani | 27/12/2009DLF and Tata Steel added Open Interest in December series.Huge position was build up at Suzlon December
Promotional Codes for TradeKing
By: Monroe Rosales | 26/12/2009TradeKing, is an ultra low cost online broker. Here are my top 5 reasons to join TradeKing along with some promotional codes to save you money with you sign up.
Which Forex Trading System is Right For You?
By: venkatsiddhu | 26/12/2009The development of automated forex trading systems in the recent years is highly dependent on the changes in trading software including speed, dependability and accesability of internet. You cant believe when you imagine that an average joe sitting at home taking laptop and making the living from forex trading by maiking the profitable trades. In forex trading system the trader need not play his hands role,it can keep tabs on currrency prices and in some conditions it can automatically close
Tips You Must Know In Choosing Automated Forex Trading
By: Cedric Welsch | 26/12/2009Forex trading can be very demanding especially once all the markets have already opened. It can prove to be a very profitable business if you take the time to learn it and get yourself familiar with the trade.
Our Results in Life are By-products of our Body’s Addiction to our Thoughts
By: Dean T Whittingham | 18/02/2008 | MotivationalYou may not be aware of this but every thought we have and every action we take has a chemical reaction attached to it. A thought for example, when initiated sets off a reaction in the brain which in turn creates a chemical that is then sent into the bloodstream where it is received by all our body’s cells.
How the Self Image is Created and How the Mind Uses it to Create your Reality
By: Dean T Whittingham | 18/02/2008 | MotivationalIf you’ve ever watched documentaries on the African Lion, you may have learned that you must never run if chased by a lion. The reason, apart from the fact that you’ll never out run a lion, is because chasing is part of their genetic make-up; they know no other way.
How your Self Image is Stopping you From Creating Wealth and Success
By: Dean T Whittingham | 18/02/2008 | MotivationalA few years ago my parents won the state lottery, to the tune of over $500,000. After 4 short years they were bankrupt, separated and forced to live in government housing. This came after being home owners, full time employees and money to spare.
A Stock, Futures and Forex Trading System That Gets Back to the Basics
By: Dean T Whittingham | 31/01/2008 | InvestingAll professions whether it be sport, business, or trading have what are called the basics and if you’re starting out in a new profession, the basics form the foundation or the core. However if you’ve been practicing your profession for quite some time and feel you’ve gone off track or are not hitting your goals, usually the best thing to do is just get back to the basics: and trading is no different.
What is the Hardest Thing a Stock, Futures or Forex Trader Will Ever Have to Do?
By: Dean T Whittingham | 31/01/2008 | InvestingVisit forums, join memberships, purchase tuition with member areas for support, read books, talk to fellow traders etc and you can be guaranteed you will come across many who will be struggling with a whole host of reasons why. Some will even appear as experts but beneath the surface are struggling with some aspect of their own trading system or style. But do you know what the hardest thing any trader will have to do is?
From Bull to Bear: Why Stock, Futures and Forex Markets Correct
By: Dean T Whittingham | 31/01/2008 | InvestingMarkets move up because market participants believe in the fundamentals behind the market. At a certain point it is seen that the fundamentals change and the market corrects, however the reason fundamentals change is not because of some external event, but because of the participants themselves. In other words, an excess of bullishness creates bearishness; it is the participation itself in the market that creates the shift and thus the correction or bear market.
Are you Trading Stocks, Futures or Forex in '3d' or '2d'?
By: Dean T Whittingham | 31/01/2008 | InvestingToo many traders approach trading from a 2 dimensional standpoint and this goes for stock, options, futures, forex traders…you name it. The ‘number of winning traders’, the ‘win to loss ratio’ and the ‘amount made per month’ seem to be more important than the simple bottom line.
Is your Stock, Futures or Forex Trading Doing Better Than My Laundromat?
By: Dean T Whittingham | 31/01/2008 | InvestingI decided I wanted to buy a Laundromat. I had $50,000 to spend and wanted to ensure it met the following criteria. Firstly, it had to be in good condition, and in a location where it will still be a viable business in 10 years time. Secondly, and more importantly for my objectives, it had to be able to return me a return on investment of 20% per year, over the next 5 years, and require no more than 1 hour of my time a week.